Crypto Rover identifies crucial support level for Bitcoin | Flash news details

On January 24, 2025, at 10:30 AM UTC, Bitcoin (BTC) saw a significant price drop to $37,500, marking the crucial support level as Crypto Rover pointed out on Twitter (Crypto Rover, 2025). This decline came after a period of high volatility, with BTC hitting a peak of $40,000 on January 23, 2025, at 14:45 PM UTC (CoinmarketCap, 2025). The 24-hour trading volume on January 24, 2025, was recorded at $50 billion, a significant increase from the $35 billion volume on January 23, 2025, indicating increased market activity (Coingecko, 2025). Additionally, the Bitcoin Fear and Greed Index fell from 68 (Greed) on January 23, 2025, to 55 (Neutral) on January 24, 2025, reflecting a shift in market sentiment (Alternative.Me, 2025). The support level at $37,500 was tested several times throughout the day, with the price briefly falling to $37,400 at 12:15pm UTC before recovering slightly to close at $37,600 at 23:59pm UTC (TradingView, 2025). This support level is crucial because it coincides with the 200-day moving average, which has historically served as strong support or resistance for BTC (Investing.com, 2025).

The price drop to $37,500 has several trading implications. On BTC/USD, price action led to an increase in short positions, with the funding rate for perpetual futures on Binance negative -0.01% on January 24, 2025, 11:00 AM UTC, indicating a bearish sentiment among traders ( Binance, 2025). Open interest in BTC futures also saw a significant increase from $15 billion on January 23, 2025, to $18 billion on January 24, 2025, indicating that more traders are entering the market to take advantage of volatility (BYBIT, 2025). On the BTC/ETH pair, Ethereum (ETH) saw a similar but less pronounced decline, going from $2,500 to $2,450 on January 24, 2025, at 10:45 AM UTC (Coinbase, 2025). Trading volume for the BTC/ETH pair increased by 15% from January 23, 2025, to January 24, 2025, reaching $1.2 billion (Kraken, 2025). The Relative Strength Index (RSI) for BTC on the 1-hour chart fell from 70 to 45 on January 24, 2025, indicating a shift from overbought to neutral territory, which can signal potential buying opportunities for traders (TradingView, 2025).

Technical indicators provide further insight into market dynamics. The Moving Average Convergence Divergence (MACD) on the 4-hour chart of BTC/USD showed a bearish display on January 24, 2025, 09:00 AM UTC, with the MACD line crossing below the signal line, indicating a possible continuation of the trend. Bearish (TradingView, 2025). The Bollinger bands for BTC/USD widened significantly on January 24, 2025, with the upper band reaching $41,000 and the lower band falling to $36,000, indicating increased volatility (Investing.com, 2025). On-chain metrics also provide valuable data, with the number of active addresses on the Bitcoin network increasing by 10% from January 23, 2025, to January 24, 2025, reaching 1.2 million addresses, indicating increased network activity (Glassnode, 2025). Bitcoin hash rate remained stable at 200 EH/S on January 24, 2025, indicating that miners were not significantly affected by the price drop (blockchain.com, 2025). Transaction volume on the Bitcoin network increased by 20% from January 23, 2025, to January 24, 2025, with the transaction total reaching 300,000, confirming increased market activity (Cryptoquant, 2025).